Tracy Invested $1,000 Five Years Ago and Earns 4 Percent

question 3

Multiple Choice

Tracy invested $1,000 five years ago and earns 4 percent interest on her investment.By leaving her interest earnings in her account,she increases the amount of interest she earns each year.The way she is handling her interest income is referred to as which one of the following?

• A)simplifying
• B)compounding
• C)aggregation
• D)accumulation
• E)discounting

---

Definitions:

Daily Life

Activities and experiences that constitute a person's regular routine and existence.

Biological Views

Perspectives in science that emphasize the importance of physiological and genetic factors in understanding human behavior and mental processes.

Genetically Predisposed

Having a higher likelihood of developing certain traits or diseases based on inherited genetic factors.

Ancestors

Individuals from whom one is descended, typically beyond the immediate family, reaching back through generations.